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Analysis

Analysis: Volatility Returns to Cryptoworld after Healthy Rally

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Bitcoin at $3500, Ethereum at $300, Litecoin at $50… Those levels were quite far away just a few weeks ago when the broad correction in the segment dragged the major players and the smaller coins lower. Although only BTC hit new highs during this leg higher, given the incredible rise prior to that in the Ethereum ecosystem, one needs to look very close to conclude that Bitcoin is outperforming ETH. That said, the all-time high for Ethereum is still ways off, and the market is likely in for a short-term correction, as the two most valuable currencies both reached overbought territory following the SegWit lock-in for BTC.

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ETH/USD, 4-Hour Chart Analysis

Ethereum spiked above $300 after passing the strong $285 resistance, and it started a choppy consolidation afterward, with the MACD indicator pointing to a correction. Litecoin reached a high above the $50 level for the first time in a month, while Dash, Ripple, and Ethereum Classic also attempted a rally, before retracing most of their gains. Let’s how the majors stand as BTC and ETH are working through their overbought readings.

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Bitcoin

BTC/USD, 4-Hour Chart Analysis

Bitcoin entered a short-term correction after hitting $3500, and it spiked as low as $3150 this morning although it bounced back to $3300 quickly. The uptrend in the coin is not in danger yet, but more consolidation is likely before another move to new highs. Support levels are found near $3000 and $2900. The long-term picture is also getting close to overbought, and investors should wait for a deeper correction to enter new positions, while traders should still trade with a bullish bias.

Litecoin

LTC/USD, 4-Hour Chart Analysis

Litecoin rallied above $50 as we expected, but it remains below the crucial level after a swift pull-back. The short-and long-term picture remains bullish, and a test of the prior high above $60 is likely in the coming period, with the long-term range projection target still being just below $60.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash bounced off the upper boundary of the current triangle consolidation pattern overnight after spiking to $210. The technical setup is still clearly positive, and a break-out to new highs towards the long-term target at $260 is the most likely major move of the coming period. Primary support is at $190 with further levels at $170 and near $150.

Ripple

XRP/USD, 4-Hour Chart Analysis

XRP hit $0.20 overnight, breaching the declining long-term trendline in the process, before falling back to the $0.18 support/resistance level. The coin remains stuck in the correction pattern, but a move higher is more and more likely, with the crucial resistance zone around $0.22 being the next possible stop for the coin.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

ETC moved higher as well overnight, helped by the broad rally, but it also failed to stay above the $0.16 level and the declining trendline, similarly to XRP. As the correction pattern is converging with the base formation around the $14 level soon, the next major move will likely start in the coming week.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero remains among the strongest coins short-term, hovering around the $52, despite reaching overbought territory and starting a consolidation. Support levels are still found at $50, $46, and near $42, while a move towards the prior high at $58 remains likely when the current correction runs its course.

NEM

NEM/BTC, 4-Hour Chart Analysis

NEM turned volatile after bouncing back off the 0.00009 level for the second time. Both the short- and long-term setups look encouraging, and a rally to 0.00010 is likely in the coming days. Strong support is found at 0.000075, and below that near 0.00007.

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Analysis

Technical Analysis: Litecoin and Ethereum on the Move as Rotation Continues

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The altcoin bull run continued today despite the US Thanksgiving holiday, as trading remained active in the majors, and another important break-out occurred, this time in Ethereum. Litecoin is also strong today, and the coin is testing the key $75 resistance level, as it follows in the track of ETH again. The currency still looks set to hit the next target at $82.50, with the all-time highs below just below the $100 level also in sight. While the long-term momentum is edging towards overbought territory, the coin remains bullish on both time-frames, with strong support still found at $64 and $56.

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LTC/USD, 4-Hour Chart Analysis

Ethereum scored a new record high after moving past $400 for the first time in five months, and considering the lengthy consolidation before the move, more upside is likely for the second largest coin. With the long-term momentum still not being overbought, the token’s price might test the $500 mark in this leg higher, with Fibonacci targets ahead at $475 and $512. Support levels are found below $400 at 4380 and $350.

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ETH/USD, 4-Hour Chart Analysis

Ripple is also attempting another bullish move, while Monero and Dash are consolidating just below their recent highs, while IOTA is in a short-term correction pattern as well. More and more altcoins are now in the latter phases of their rallies, just like Bitcoin, but traders still have opportunities with favorable risk-rewards ratios. Let’ see the short-term charts.

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Analysis

Break-Out: Another Crazy Rally in Ethereum?

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What crazy rally you might ask? Bitcoin is the star, right? Everything was about BTC (and BCH) in the last few months, and lots of traders forget the gains that ETH posted amid the take-off of the ICO Rocket during the spring.

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Comparing ETH and BTC in 2017

By the numbers, out of the two largest coins, 2017 is still the year of Ethereum as the 3600% rise in the token’s price dwarfs Bitcoin’s impressive 630% gain. Could Ethereum be on the verge of another epic surge? Before answering that question, first let’s see what happened with the coin in recent months.

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How Did We Get Here?

ETH/USD, Daily Chart Analysis

Ethereum finally broke above the magical $400 barrier that has kept a lid on the token’s price for five months after the crazy run-up in May. What first followed after that stellar move, was a 70% decline top-to-bottom, with a flush-out panic low in July.

Our trend model turned long-term positive even before the spike lower, but since then, the coin only managed to get close to the all-time highs, while Bitcoin eclipsed the previous star with its dominant performance. Now the tide might be turning, as ETH is finally gathering bullish momentum and today it breached the $400 mark, flirting with a break-out from the giant triangle consolidation pattern.

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Altcoins

Zcash Dip Offers Chance to Buy

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The ZEC/USD pair went into a downtrend for several days after hitting the 435 level in June. It shed more than half of its value before establishing strong support at 140. The market tried to reclaim resistance at 310 twice, but was sent back on both occasions. As a result, we have a massive reversal structure that might skyrocket the pair into a new all-time high.

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The market closed above 310 a couple of days ago on weak volume which is why it’s struggling to stay above that level. Technical indicators show that momentum is weakening, increasing the likelihood of a dip. A slight correction not only gives the market legs for its next move up, but it also offers you a chance to place orders.

They key indicator to watch for is volume. As long as volume remains sluggish, the market will most likely slide down to 280 first and then 262 next. That’s a good zone to accumulate positions. If volume suddenly spikes, at least 230k at Bitfinex, then we have a legitimate breakout that will take the market to 465.

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 Summary of Strategy

Buy: between 280 and 262 OR confirmed breakout with volume of at least 230k at Bitfinex

Support: 280, 262, and 243

Resistance: 310, 352, 400, and 412

Target: 465

Stop: If the market breaches 243

 

Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

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